Back to Notes Index

	Notes to the accounts

	35 Undated loan capital
	Undated loan capital, issued by the Bank for the development and expansion of the Group’s business and to strengthen the capital base and by The Woolwich for the general purposes of its business, comprised:
			2000	1999
		Notes	£m	£m
	Convertible to preference shares The Bank
	8% Convertible Capital Notes Series E ($500m)	(h, s)	335	309
	Non-convertible The Bank
	Junior Undated Floating Rate Notes ($121m, 1999 $138m)	(a, j)	81	85
	Undated Floating Rate Primary Capital Notes Series 1 ($358m)	(a, k)	240	221
	Undated Floating Rate Primary Capital Notes Series 2 ($442m)	(a, k)	297	273
	Undated Floating Rate Primary Capital Notes Series 3	(a, k)	145	145
	9.875% Undated Subordinated Notes	(b, l)	300	300
	9% Permanent Interest Bearing Capital Bonds	(h, q)	100	100
	7.875% Undated Subordinated Notes	(c, r)	100	100
	7.125% Undated Subordinated Notes	(d, n)	275	–
	6.875% Undated Subordinated Notes	(e, o)	400	–
	6.5% Undated Subordinated Notes (FFr 1,000m)	(f, m)	95	95
	5.03% Reverse Dual Currency Undated Subordinated Notes (Yen 8,000m)	(g, p)	47	48
	5% Reverse Dual Currency Undated Subordinated Notes (Yen 12,000m)	(g, p)	70	73
	The Woolwich
	9.25% Perpetual Subordinated Bonds	(i, t)	187	–
			2,337	1,440
	Security and subordination
	None of the undated loan capital of the Bank or The Woolwich is secured. The Junior Undated Floating Rate Notes (the “Junior Notes”) rank behind the claims against the Bank of depositors and other unsecured unsubordinated creditors and holders of dated loan capital. All other issues of the Bank’s undated loan capital rank pari passu with each other and behind the claims of the holders of the Junior Notes. The 9.25% Perpetual Subordinated Bonds rank behind the claims against The Woolwich of its depositors and other unsecured unsubordinated creditors and holders of its dated loan capital.
	Interest Notes
	(a) These Notes bear interest at rates fixed periodically in advance based on London interbank rates. (b) These Notes bear a fixed rate of interest until 2008. After that date, in the event that the Notes are not redeemed, the coupon will be reset to a fixed margin over a reference gilt rate for a further period of 5 years. (c) These Notes bear a fixed rate of interest until 2003. After that date, in the event that the Notes are not redeemed, the coupon will be reset to a fixed margin over a reference gilt rate for a further period of 10 years. (d) These Notes bear a fixed rate of interest until 2020. After that date, in the event that the Notes are not redeemed, the coupon will be reset to a fixed margin over a reference gilt rate for a further period of 5 years. (e) These Notes bear a fixed rate of interest until 2015. After that date, in the event that the Notes are not redeemed, the coupon will be reset to a fixed margin over a reference gilt rate for a further period of 5 years. (f) These Notes bear a fixed rate of interest until 2009. After that date, in the event that the Notes are not redeemed, the Notes will bear interest at rates fixed periodically in advance based on European interbank rates. (g) These Notes bear a fixed rate of interest until 2028 based on a U.S. dollar principal amount, but the coupons have been swapped, resulting in a Yen interest rate payable which is fixed periodically in advance based on London interbank rates. After that date, in the event that the Notes are not redeemed, the Notes will bear Yen interest at rates fixed periodically in advance based on London interbank rates. (h) The interest rates on these Notes are fixed for the life of those issues. (i) These Notes bear a fixed rate of interest until 2021. After that date, in the event that the Notes are not redeemed, the coupon will be reset to a fixed margin over a reference gilt rate for a further period of 5 years. The Bank is not obliged to make a payment of interest on its undated loan capital (other than the Junior Notes) if, in the preceding six months, a dividend has not been declared or paid on any class of shares of Barclays PLC or, in certain cases, any class of preference shares of the Bank. The Woolwich is not obliged to a make a payment of interest on its undated loan capital if, in the immediately preceding interest period, a dividend has not been paid on any class of its share capital. Interest not so paid becomes payable if such a dividend is subsequently paid or in certain other circumstances. No payment of principal or any interest may be made unless the Bank or The Woolwich, as appropriate, satisfies a specified solvency test. Interest payable on undated loan capital amounted to £143m (1999 £125m, 1998 £127m).
	Repayment and conversion Notes
	( j) These Notes are repayable, at the option of the Bank, in whole or in part on any interest payment date. (k) These Notes are repayable in each case, at the option of the Bank, in whole on any interest payment date. (l) These Notes are repayable, at the option of the Bank, in whole in 2008, or on any fifth anniversary thereafter. (m)These Notes are repayable, at the option of the Bank, in whole in 2009, or on any fifth anniversary thereafter. (n) These Notes are repayable, at the option of the Bank, in whole in 2020, or on any fifth anniversary thereafter. (o) These Notes are repayable, at the option of the Bank, in whole in 2015, or on any fifth anniversary thereafter. (p) These Notes are repayable, at the option of the Bank, in whole in 2028, or on any fifth anniversary thereafter. (q) These Bonds are repayable, at the option of the Bank, in whole at any time. (r) These Notes are repayable, at the option of the Bank, in whole at any time up to and including October 2003, or on any tenth anniversary thereafter. (s) These Notes are repayable at par, at the option of the Bank, in whole on any interest payment date falling in or after April 2003 and are convertible on any interest payment date, at the option of the Bank, into 40,000,000 non-cumulative dollar-denominated preference shares of the Bank. (t) These Bonds are repayable, at the option of The Woolwich, in whole in 2021, or on any fifth anniversary thereafter. In addition, each issue of undated loan capital is repayable, at the option of the Bank or The Woolwich, as appropriate, in whole for certain tax reasons, either at any time, or on an interest payment date. There are no events of default except non-payment of principal or mandatory interest. Any repayments require the prior approval of the Financial Services Authority. The Series E Notes have been registered under the US Securities Act of 1933. The other issues of undated loan capital, which were made in the eurocurrency market, have not been so registered. During the year a subsidiary of the Bank purchased $17m of Junior Notes (1999 $30m) at a discount of $3m (£2m) (1999 $4m (£3m)).